IIB 

112TH CONGRESS 

2D SESSION H. R. 1509 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 21, 2012 

Received; read twice and referred to the Committee on Finance 

AN ACT 

To amend title II of the Social Security Act to prohibit 

the inclusion of Social Security account numbers on 

Medicare cards. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Medicare Identity 

3 Theft Prevention Act of 2012’’. 

4 SEC. 2. PROHIBITION OF INCLUSION OF SOCIAL SECURITY 

5 ACCOUNT NUMBERS ON MEDICARE CARDS. 

6 (a) IN GENERAL.—Section 205(c)(2)(C) of the Social 

7 Security Act (42 U.S.C. 405(c)(2)(C)) is amended— 

8 (1) by moving clause (x), as added by section 

9 1414(a)(2) of the Patient Protection and Affordable 

10 Care Act, 2 ems to the left; 

11 (2) by redesignating clause (x), as added by 

12 section 2(a)(1) of the Social Security Number Pro13 tection Act of 2010, and clause (xi) as clauses (xi) 

14 and (xii), respectively; and 

15 (3) by adding at the end the following new 

16 clause: 

17 ‘‘(xiii) The Secretary of Health and Human Services, 

18 in consultation with the Commissioner of Social Security, 

19 shall establish cost-effective procedures to ensure that a 

20 Social Security account number (or derivative thereof) is 

21 not displayed, coded, or embedded on the Medicare card 

22 issued to an individual who is entitled to benefits under 

23 part A of title XVIII or enrolled under part B of title 

24 XVIII and that any other identifier displayed on such card 

25 is not identifiable as a Social Security account number (or 

26 derivative thereof).’’. 


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1 (b) IMPLEMENTATION.—In implementing clause (xiii) 

2 of section 205(c)(2)(C) of the Social Security Act (42 

3 U.S.C. 405(c)(2)(C)), as added by subsection (a)(3), the 

4 Secretary of Health and Human Services shall establish 

5 a cost-effective process that involves the least amount of 

6 disruption to Medicare beneficiaries and health care pro7 viders. The Secretary shall consider implementing a proc8 ess, similar to the process involving Railroad Retirement 

9 Board beneficiaries, under which a Medicare beneficiary 

10 identifier which is not a Social Security account number 

11 (or derivative thereof) is used external to the Department 

12 of Health and Human Services and is convertible over to 

13 a Social Security account number (or derivative thereof) 

14 for use internal to such Department and the Social Secu15 rity Administration. 

16 (c) EFFECTIVE DATE.— 

17 (1) IN GENERAL.—Clause (xiii) of section 

18 205(c)(2)(C) of the Social Security Act (42 U.S.C. 

19 405(c)(2)(C)), as added by subsection (a)(3), shall 

20 apply with respect to Medicare cards issued on and 

21 after an effective date specified by the Secretary of 

22 Health and Human Services, but in no case shall 

23 such effective date be later than the date that is 3 

24 years after the date of the enactment of this Act. 

25 (2) REISSUANCE.—The Secretary— 


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1 (A) shall provide for the reissuance of 

2 Medicare cards that comply with the require3 ments of such clause not later than 3 years 

4 after the effective date specified by the Sec5 retary under paragraph (1); and 

6 (B) may permit an individual to apply for 

7 the reissuance of a Medicare card that complies 

8 with such requirements before the date of 

9 reissuance otherwise provided under subpara10 graph (A) in such exceptional circumstances as 

11 the Secretary may specify. 

12 (d) FUNDING.— 

13 (1) OFFSET FROM MIF.—Amounts in the Medi14 care Improvement Fund under section 1898 of the 

15 Social Security Act (42 U.S.C. 1395iii) that are 

16 available for expenditures from the Fund for services 

17 furnished in a fiscal year (through fiscal year 2020) 

18 shall be available for transfer to the Centers for 

19 Medicare & Medicaid Services Program Management 

20 Account as the Secretary of Health and Human 

21 Services determines necessary to offset the costs in22 curred by the Secretary (including costs under the 

23 agreement described in paragraph (2)(A)) in such 

24 fiscal year (or a previous fiscal year) in imple25 menting clause (xiii) of section 205(c)(2)(C) of such 


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1 Act (42 U.S.C. 405(c)(2)(C)), as added by sub2 section (a)(3), and this section. 

3 (2) AVAILABILITY OF FUNDING FOR THE SO4 CIAL SECURITY ADMINISTRATION.— 

5 (A) FUNDING UNDER AGREEMENT.—The 

6 Commissioner of Social Security and the Sec7 retary of Health and Human Services shall 

8 enter into and maintain an agreement which 

9 shall— 

10 (i) provide funds to the Commissioner, 

11 at scheduled intervals as specified in the 

12 agreement, for the full costs of the respon13 sibilities of the Commissioner under this 

14 section; and 

15 (ii) require an annual accounting and 

16 reconciliation of the actual costs incurred 

17 and the funds provided under the agree18 ment. 

19 (B) AVAILABILITY OF FUNDS.—Amounts 

20 transferred to the Centers for Medicare & Med21 icaid Services Program Management Account 

22 under paragraph (1) shall be available to the 

23 Secretary of Health and Human Services to 

24 carry out the agreement under subparagraph 

25 (A) and the Secretary shall provide funds to the 


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1 Commissioner as required under such agree2 ment. 

3 (e) ACCOUNTABILITY.— 

4 (1) ACCOUNTING OF EXPENDITURES.—The 

5 Secretary of Health and Human Services and the 

6 Commissioner of Social Security shall— 

7 (A) keep a detailed accounting of expendi8 tures associated with the implementation of 

9 such clause and this section; and 

10 (B) submit a report on such expenditures 

11 to the Committee on Ways and Means of the 

12 House of Representatives, the Committee on 

13 Finance of the Senate, and the Comptroller 

14 General of the United States, on a semi-annual 

15 basis, in each of fiscal years 2013 through 

16 2021. 

17 (2) AUDIT.—The Comptroller General shall 

18 conduct a semi-annual financial audit of the expend19 itures of the Department of Health and Human 

20 Services and of the Social Security Administration 

21 during such fiscal years in implementing such clause 

22 and this section. Each such audit shall include an 

23 examination of whether funds made available under 

24 subsection (d) are used solely for the purpose de25 scribed in such subsection. 


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1 SEC. 3. MEDICARE SMART CARD TECHNOLOGY STUDY AND 

2 REPORT. 

3 (a) STUDY.—The Comptroller General of the United 

4 States shall conduct a study that examines whether the 

5 Medicare program should use smart card technology for 

6 Medicare beneficiary cards and for provider membership 

7 cards. 

8 (b) DETAILS OF STUDY.—Such study shall include 

9 an examination of the following: 

10 (1) Potential levels of provider investment re11 quired to use cards with such technology in various 

12 care settings. 

13 (2) Systems-related and implementation-related 

14 costs to the Medicare program to use such tech15 nology. 

16 (3) The extent to which private insurance com17 panies have adopted or considered such technology 

18 and their reasons for adoption or non-adoption of 

19 such technology. 

20 (4) The extent to which use of cards with such 

21 technology would— 

22 (A) reduce the potential for identity theft 

23 and other unlawful use of Medicare beneficiary 

24 and provider identifying information; 

25 (B) increase the quality of care furnished 

26 to Medicare beneficiaries; 


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1 (C) improve the accuracy and efficiency in 

2 the billing for Medicare items and services fur3 nished by Medicare providers; 

4 (D) reduce waste, fraud, and abuse in the 

5 Medicare program; and 

6 (E) impact the ability of Medicare bene7 ficiaries to access services. 

8 (c) REPORT.—Not later than 2 years after the date 

9 of the enactment of this Act, the Comptroller General shall 

10 submit to the Committees on Ways and Means and En11 ergy and Commerce of the House of Representatives and 

12 the Committee on Finance of the Senate a report on the 

13 study conducted under this section. Such report may in14 clude recommendations regarding the use of smart card 

15 technology under the Medicare program. 

Passed the House of Representatives December 20, 

2012. 

Attest: KAREN L. HAAS, 

Clerk. 


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